GE Vernova (GEV) and Vertiv (VRT) posted third-quarter results that reinforced the AI infrastructure demand story, sending both stocks sharply higher.
GE Vernova traded near $917 on Wednesday, up about 2.5%, after closing at $895.08 on Tuesday. The company reported adjusted earnings per share of $4.81, beating the roughly $4.00 consensus estimate. Revenue reached $12.64 billion, above the $12 billion expected, up 27% year over year and 18% on an organic basis. Net income was $1.3 billion, a 10.2% margin, while adjusted EBITDA came in at $1.9 billion, a 15.4% margin.
Orders were the standout metric, rising 96% organically to $29 billion, well above BofA analyst Andrew Obin's estimate of $21 billion. Backlog grew by $20 billion from the prior quarter to $197 billion. Hyperscalers are racing to secure power for AI data centers, and equipment demand at Power plus strong services business drove the latest jump. The company generated $6.1 billion in cash from operations and $5.4 billion in free cash flow.
Management raised full-year 2026 revenue guidance to between $46.5 billion and $47.5 billion, versus the prior range of $45.5 billion to $46.5 billion, and lifted free cash flow guidance to $16 billion to $17 billion. GE Vernova also agreed to buy Trench Group for $9 billion and doubled its buyback authorization to $20 billion from $10 billion. CEO Scott Strazik said electricity infrastructure demand is growing worldwide. Jefferies analyst Julien Dumoulin-Smith called the stock a 'battleground stock' but rates it Buy with a $1,185 price target; about 75% of analysts covering the stock rate it Buy.
Vertiv shares jumped nearly 20% on October 28 after the supplier of power and cooling equipment beat Q3 expectations. Adjusted earnings reached $2.21 per share, above the $1.82 consensus. Organic orders more than doubled from a year earlier, while organic sales rose 55%. Revenue was $4.31 billion, adjusted operating margin rose 2.9 percentage points to 25.2%, and adjusted free cash flow increased 50% to $652 million.
Vertiv management raised its full-year revenue outlook by $650 million to $14.65 billion at the midpoint and now projects adjusted earnings of $7.15 per share. At roughly $237, VRT shares remained about 38% below their 52-week high. The results provide evidence that AI-related data center spending is converting into equipment orders, though analysts caution that execution and project timing remain key tests for a lasting recovery.
